CHAPTER 18 The following information is available for The NewQuest Corporation f
ID: 2572383 • Letter: C
Question
CHAPTER 18
The following information is available for The NewQuest Corporation for 2016: Inventories Materials Work in process Finished goods January 1 $352,000 632,000 606,200 December 31 $436,200 590,800 574,000 Advertising expense Depreciation expense-office equipment Depreciation expense-factory equipment Direct labor Heat, light, and power-factory Indirect labor Materials purchased Office salaries expense Property taxes-factory December 31 $295,400 43,800 56,340 669,400 22,220 77,000 659,200 185,300 18,500Explanation / Answer
a)
B)
The NewQuest Corporation Schedule of cost of goods manufactured Direct Meterial Beginning raw meterial inventory $ 352,000 Add: Purchase of raw meterial $ 659,200 Raw meterials available for production $ 1,011,200 Less: Ending raw meterial inventory $ 436,200 Raw meterials transferred to production $ 575,000 Direct Labour $ 669,400 Manufacturing overhead Indirect labour $ 77,000 Depreciation expense - factory equipment $ 56,340 Heat, light and power $ 22,220 Rent expense - Factory $ 33,000 Supplies - Factory $ 15,200 Misc. costs - Factory $ 9,700 Property taxes - Factory $ 18,500 Total Manufactoring overhead $ 231,960 Total Manufactoring Cost $ 437,440 Add:Beginning work in progress inventory $ 632,000 Less: Ending work in progress inventory $ 590,800 Cost of goods manufactured $ 478,640